According to a document titled Art Partnership Inventory included in the Epstein files, by 2014, entities tied to Black had roughly $1 billion worth of artwork as collateral. By 2017, that amount grew to about $1.4 billion (2). At the end of 2015, Black had more than $600 million in loans outstanding (4).Private banks typically lend against art using a loan-to-value (LTV) ratio — a measure that determines how much a lender will extend based on an asset’s appraised value. For art, those ratios usually top ou ...

While many Americans sweat income tax time, for billionaires, it's barely on the calendar. That's because for the very richest, income plays a minor role in wealth. To lower tax liabilities, billionaires reduce their actual income to a trickle, while living off the fortune they’ve amassed in appreciating assets: stocks, real estate, and the often rapidly growing companies they own. A study released last summer by professors at the University of California, Berkeley, found that the all-in tax rate paid b ...

While many Americans sweat income tax time, for billionaires, it's barely on the calendar. That's because for the very richest, income plays a minor role in wealth. To lower tax liabilities, billionaires reduce their actual income to a trickle, while living off the fortune they’ve amassed in appreciating assets: stocks, real estate, and the often rapidly growing companies they own. A study released last summer by professors at the University of California, Berkeley, found that the all-in tax rate paid by ...

Performance was driven by positive credit trends and the benefit of higher interest rates on both persistency and investment income. Management attributes the 13% book value growth to a 'buy, manage, and distribute' model that prioritizes unit economics over volume. Persistency remains high at 86% because roughly 60% of the in-force portfolio has a note rate of 6% or lower, creating a 'lock-in' effect. The portfolio default rate increase is characterized as normal seasonality and the expected season ...

Core Insights - Tax planning for wealthy households is more complex than for average families, with strategies that can significantly reduce tax bills while remaining legal [1] Group 1: Long-Term Capital Gains - Investment income held for over a year is taxed at a lower rate than regular earnings, allowing wealthy investors to hold assets longer without immediate liquidity needs [2] - This approach enables gains to grow without triggering higher taxes, providing more flexibility for wealthy households compared to those reliant on paychecks [3] Group 2: Step-Up in Basis Rule - The step-up in basis loophole allows inherited property or investments to have their original purchase price adjusted to current market value, eliminating decades of capital gains [4] Group 3: Borrowing Against Assets - Wealthy households often borrow against their assets instead of selling them, avoiding taxable events and maintaining liquidity through low-interest loans secured by stocks or real estate [5] - Upon death, these assets pass to heirs with a stepped-up basis, erasing the tax bill entirely [5] Group 4: Tax-Loss Harvesting - Tax-loss harvesting involves selling investments that have lost value to offset gains elsewhere, effectively reducing the overall tax bill while allowing investors to maintain their positions [6][7] Group 5: Credits for High Earners - Wealthy individuals are more likely to qualify for certain tax credits related to hiring, business infrastructure, and energy projects, which can significantly lower their effective tax rate [8]

Core Viewpoint - Jay-Z and Beyoncé are utilizing a financial strategy known as "buy, borrow, die," which involves acquiring appreciating assets and borrowing against them to create tax-free cash flow while potentially minimizing capital gains taxes for their heirs [1][7]. Group 1: Financial Strategy - The couple has secured attractive interest rates on their mortgages, with a new mortgage from Morgan Stanley at a fixed rate of 5% for 30 years, which is favorable compared to the average 30-year fixed mortgage rate of 6.1% projected for 2026 [2][3]. - They have taken on significant liabilities, such as a $110.6 million mortgage, which represents only 2.8% of their combined wealth estimated at around $4 billion [3][4]. Group 2: Real Estate Portfolio - Their real estate portfolio is valued at approximately $313 million, including properties like a Hamptons home, a Malibu mansion, and a New York penthouse, with the Bel-Air mansion being a key asset [5][4]. - The couple has previously secured a $52.8 million mortgage on the same property four years prior to the recent $57.8 million mortgage [4]. Group 3: Investment Opportunities - By borrowing against their mansion, they can invest the $110.6 million owed into business ventures or the S&P 500, which has delivered an annualized return of about 16.3% over the past decade [7]. - This strategy is not exclusive to billionaires; other celebrities, like Paris Hilton, also leverage mortgages for financial benefits, indicating a broader trend among wealthy individuals [8].

Core Insights - The article contrasts the different approaches to debt between the middle class and the wealthy, highlighting that the wealthy often leverage debt as a tool for investment rather than consumption [1][2]. Group 1: Middle Class vs. Wealthy Debt - The middle class typically uses debt for consumption of depreciating assets such as cars and vacations, while 52% of consumers reported using credit cards for essential purchases like groceries [1]. - Wealthy individuals, in contrast, borrow against their assets to fund investments in appreciating assets like real estate and businesses, viewing debt as a means to enhance liquidity and defer taxes [2][4]. Group 2: Investment Strategies - A common strategy among the wealthy is to take loans against appreciated stocks or other assets instead of selling them, which helps avoid capital gains tax and maintains ownership stakes [3][4]. - The "Buy, Borrow, Die" strategy encapsulates how wealthy individuals manage their investments: they buy stocks, borrow against them for cash needs, and avoid capital gains tax upon death due to the "stepped-up basis" tax law [4][5].

Core Insights - The U.S. tax system primarily taxes income rather than wealth, allowing billionaires to grow their wealth through asset appreciation without immediate tax implications [2][6] - Billionaires utilize a strategy known as "buy, borrow, die," which involves purchasing appreciating assets, borrowing against them, and passing them to heirs to avoid capital gains taxes [3][5] Taxation Mechanisms - Billionaires do not earn traditional income; their wealth increases through assets like stocks and real estate, which are not taxed until sold [2][4] - When billionaires borrow against their assets, the borrowed money is not considered taxable income, allowing them to access significant funds without incurring tax liabilities [5] - Upon death, assets transferred to heirs receive a "step-up in basis," eliminating prior capital gains taxes and allowing heirs to inherit assets at current market value [5] Tax Rate Comparisons - Capital gains tax rates for billionaires are significantly lower than income tax rates for average Americans, with capital gains taxed at 0%, 15%, or 20% compared to income tax rates of 10% to 37% [6][7] - This disparity in tax treatment is exemplified by Warren Buffett's statement about paying a lower tax rate than his secretary due to the nature of capital gains taxation [6] Real Estate Strategies - Real estate investors can use depreciation to offset taxable income, allowing them to report losses on paper even when properties generate cash flow and appreciate in value [8]

Morning Minute: Saylor and Tom Lee Buy Big► https://t.co/6T7vzpoxl1 https://t.co/6T7vzpoxl1 ...

Housing Market Trends - Zillow reports that 59% of renters intending to move within the next year plan to continue renting [1] - The average homeowner now takes 7 to 10 years for owning to make more financial sense than renting, considering mortgage interest rates, home value appreciation (expected to rise less than 2% year-over-year), rent price growth, and opportunity costs [2][3] - In expensive coastal metros like New York City and San Francisco, it can take 15 to 20 years to break even on buying, while in more affordable metros like Memphis or St Louis, it takes 3 to 4 years [4][6] - Prior to the pandemic, the buy-rent break-even point was 2 to 3 years nationwide [7] Renting vs Buying - Renting can be a smart long-term financial option, leading to the rise of the lifestyle renter who values flexibility and freedom [7][8] - The decision to rent or buy depends on personal lifestyle choices and how long one plans to stay in a place [8][9] Advice for Aspiring Homeowners - Improve credit, debt-to-income ratio, and savings to land a better interest rate [11] - Utilize tools like Zillow's Buiability to determine affordability on a monthly basis [12] - Form a team of experts, including a great agent and loan officer, to gain a competitive advantage [13] Future Outlook - Any cuts in mortgage rates or reduction in prices will help affordability and bring more buyers to the market, shrinking the buy-rent break-even time horizon [14] - Even if mortgage rates were to come down dramatically, only 37% of renters said they would buy a home, indicating a continued preference for renting due to lifestyle reasons [15]